HC Deb 10 February 1908 vol 183 c1428
MR. HAYDEN (Rosscommon, S.)

I beg to ask Mr. Chancellor of the Exchequer if he can state what is now the annual amount of the Sinking Fund created for the purposes of The Irish Land Act, 1903; in what securities this money is being invested, and what is the profit arising from such investment; and whether profit so arising is placed to the credit of the Irish Land Act Finance Fund or, is paid direct to the Treasury and used by the Treasury for purposes other than financing the Irish Land Act of 1903.

MR. ASQUITH

The Sinking Fund receipts of the Irish Land Purchase Fund in the current financial year are estimated to amount to £101,000. The Sinking Fund portion of the Purchase Annuities is not invested in securities, but is applied in making further purchase advances, in accordance with Section 36 (2) of the Irish Land Act, 1903. The effect of this application is to reduce the amount of Stock which would otherwise have to be created to provide for advances, and thereby to reduce the charge for Excess Stock upon the Guarantee Fund. By this mode of application the Sinking Fund accumulates at a fixed rate of 2¾ per cent. per annum. No profit is made over and above the 2¾ per cent., but the Guarantee Fund is saved from a loss which would fall upon it if the Sinking Fund moneys were applied in any other way.

MR. HAYDEN

Has this been the practice since the commencement of operations under the Act.

MR. ASQUITH

I think so. I will inquire.